On 1 July 2020, Sam Ltd leased a processing plant from Luca Ltd. The plant was purchased by Luca Ltd on 30 June 2020 for its fair value of $348,942. The lease agreement contained the following provisions. The lease term is for 3 1 July 2020 years, starting on Annual lease payment, payable on 30 June each $120,000 year Estimated useful life of 5 years plant Estimated residual value 50,000 of plant at end of lease term Residual value guaranteed 30,000 by lessee (Sam Ltd) Interest rate implicit in the 8% lease Present value of $1 annuity over 3 years at 8% per annum Procent value 2.577097 832 Present value of $1 annuity over 3 years at 8% per annum 2.577097 Present value of $1 lump 0.793832 sum in 3 years at 8% per annum Required 1. Prepare the lease receipts schedule for Luca Ltd. (4 marks) 2. Prepare the journal entries in the records of Luca Ltd at the inception of the lease and for the year ended 30 June 2021